SK Hynix bids $9B for Toshiba chip business, Westinghouse goes bankrupt
March 30, 2017
South Korea’s SK Hynix (KRX: 000660) has reportedly led a group of investors offering some $9 billion to take a majority stake in the Toshiba (TKO: 6502) memory chip business, on the same day that Toshiba nuclear subsidiary Westinghouse Electric Company filed for Chapter 11 bankruptcy protection. Toshiba also has committed $200 million as a backstop guarantee to the $800 million in financing commitments Westinghouse secured from Apollo Global Management to fund the business during its reorganization, according to Reuters.
Toshiba previously announced divestment plans for several of its subsidiaries after writing down Westinghouse by $6.3 billion in February. However, the bid for its NAND flash memory unit has come in high enough for the Japanese company to not shortchange its shareholder equity, again per Reuters. As for the Westinghouse bankruptcy filing, it clouds the future of the VC Summer project in South Carolina, which is the first new US nuclear power plant to be built in 30 years.